How Much Is Mark Cuban’s Social Security Check?
Written by
Marc Guberti
Edited by
Zuri Anderson
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Anyone who contributes to the Social Security program is entitled to benefits, and people who put more into the system receive higher benefits.
Billionaire entrepreneur Mark Cuban is 67 years old, so he can start taking out Social Security at anytime, but he will receive the maximum benefit if he waits until turning 70.
How Much Can You Receive From Social Security?
Your age, the year you first claimed Social Security, your earnings and inflation all play a role in how much you receive from Social Security.
You can take out Social Security the moment you turn 62, but you will get higher benefits if you wait longer. People who take it out right away are eligible for up to $2,831 per month, according to the Social Security Administration. However, waiting until you turn 70 can give you a maximum benefit of $5,108 per month.
Since Cuban has paid a lot of taxes over the years, he would be entitled to the $5,108 monthly benefit, assuming he waited until turning 70. Six-figure earners are also on the same boat and will earn just as much as Cuban from Social Security.
However, Cuban’s Social Security earnings won’t be that high after taxes. Depending on how much you earn, up to 85% of your Social Security benefits are subject to taxation. Cuban is a high earner, so he will end up with 85% of his benefits being taxable, and since he operates at the highest tax bracket, he won’t see $5,108 per month in real benefits. His actual benefit will be cut by almost half after factoring in taxes.
Should You Claim Social Security Early?
Your health is a key factor that determines if you should claim Social Security early.
If a taxpayer waits until 70 but passes away at 69, they wouldn’t have received a single penny from the program. People with a history of health problems or short longevity in their genes should consider taking it out earlier. However, people who are healthy and have family members who live long should consider waiting until they turn 70.
It’s also good to delay Social Security if you have a large 401(k) account. That way, you can make larger withdrawals from your nest egg leading up to your 70th birthday to minimize your taxes when required minimum distributions start.
Don’t Rely on Social Security
Social Security benefits are pocket change for Cuban. He won’t recognize changes to his net worth from the extra $5,108 per month, assuming he waits until 70 to tap into the program.
Cuban became a successful entrepreneur, invested his money and launched companies that comfortably cover his expenses. That type of setup puts you in the driver’s seat of your retirement instead of praying that Social Security benefits are enough to cover your living expenses.
Social Security shouldn’t be a foundational part of your retirement strategy that determines if you can afford necessities. Viewing Social Security as fun money ensures you are financially responsible and build your nest egg during your most productive years. You can also work part-time instead of retiring completely, so you have an additional income source.
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